HyperGraph seeks to be the “Google” of Blockchain – An Introduction to the HyperGraph Tokenomics Model and Beyond

By April 30, 2021DApps
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In the era of blockchain technology and decentralized computing, decentralized application (dApp) users are forever eager to access definitive, real-time information. This can be the answer to such questions as the going rate of cryptocurrency exchanges and the auction price of NFT artworks.

Inherently blockchain technology makes this a challenging prospect because it does not exist in a traditionally easy-access, static storage location. Often, the means of satisfying these questions involves cost-prohibitive cloud server setups and high skill requirements on the part of the user/developer.

HyperGraph (HGT) is poised to produce technical solutions for such demands. HyperGraph is a decentralized web3 data service platform that provides data queries and indexing services to dApp developers and operators.

At the risk of oversimplification, a common example is search engine technology like Google.

Everyone understands the premise of how Google searches and captures the general internet by looking at web addresses, URL links, keywords, and the like. This information is intermittently gathered, updated, and made available to users through an on-demand query—a search bar that generates pages of results. While sometimes only satisfying general curiosities, these results can lead to actionable knowledge: where to purchase a car battery, the recipe to a meal, and a doctor’s office hours.

HyperGraph plays a similar role within an entire blockchain network as Google does within the internet, allowing queries of blockchain business data by analyzing block indexes. The leap from typical websites to the complexities of blockchain data is where HyperGraph does the heavy lifting. Likewise, the shift from the occasional first gear of a search engine to the constant warp speed necessary for processing blockchain is where HyperGraph shines.

HyperGraph deploys solutions via three convenient approaches: code packages, GitHub links, and APIs. Optimization can be achieved within a single day and the relevant data query results are displayed in real-time. Currently, the MDex exchange using HyperGraph technology solutions delivers trade information with no delay. In contrast, other exchanges such as the Pancake exchange can suffer from delays of up to several hours or even several days.

The further-reaching vision of HyperGraph is to build a high-performance blockchain data network that supports server-less applications. Applications that are no longer dependent on a single server or database will realize the goal of entirely decentralized operation. These dApps will instead run on a network maintained by various incentive mechanisms. Participants in this network community can play and support multiple roles in HyperGraph to participate in its construction, earning corresponding revenue through their contributions (more on this below).

After the launch of an initial mining event, many developers are turning their attention to HGT, hoping to learn about it in advance and ready themselves to build indexing nodes and operate data services. HyperGraph has received very favorable feedback from cooperating developers involved in the early use of the service.

According to the current development progress and expectations, the public data network will be launch in May.

A node mortgage will be initiated during this launch to allow developers/users to join in earnest. Even if you are not a tech pro or serious hardware owner but want to share in the revenue, you can mortgage your HGT interests to the node that you think is reliable and share in the profit by those means. Those blockchain geeks capable of diving into the technical aspects, who want to build nodes, will undoubtedly be stocking up coins early. For reference, the revenue of the node with the highest earnings in the GRT project on Ethereum recently reached USD 20M.

Speculators are bullish because, in comparison, HyperGraph has potential advantages in serving high-performance public blockchains, which is of great value. If the enterprise continues on this path, with the end game of an effectively circulating project ecology and practical usage, the profits will be considerable.

Speaking of the more savvy, now, let us analyze the economic model of HGT, including the technical requirements and rewards. Some of the following may help you figure out what role you need to play in the HGT network to maximize your profit.

The Economic Model of HyperGraph

1. Index Nodes — High Technical Requirements — Can Earn HGTs

Index nodes are node service providers in the HyperGraph network that mortgage over 100,000 HGTs to join the network and provide indexing and query processing services. The Index nodes earn their query fees and indexing service rewards from the services rendered.

2. Application Developers — Medium Technical Requirements — Can Earn HGTs

The application developer can be a technical developer of the subgraph, a data user, or a community member, who gives instructions to the index nodes and indicate which subgraphs the HyperGraph network should index. Application developers mortgage HGT, give signals on specific subgraphs, and earn a portion of the query fee for the subgraphs they signal.

The HGT revenue follows the law of curve distribution; therefore, the earlier the application developer participates, the greater the percentage of the query fee the application developer receives from the subgraph. In addition, when the application developer quits the service, they will receive more HGTs than they mortgaged.

3. Miners — Low Technical Requirements — Can Earn HGTs

Miners are members of a community who volunteer to maintain the HyperGraph network but are unable to run a HyperGraph node themselves. Miners delegate their HGTs to index nodes they trust and earn a portion of the query fee and rewards for indexing services. Miners will select index nodes based on the reliability (query rates, duration, penalty times, etc.). The index nodes with more support from miners are regarded as more reliable.

4. Data users — Technical Experience Varies— Pay HGTs

Data users are HyperGraph network users who query subgraphs and pay query fees to index nodes, application developers, and miners. Generally, the data users are smart contract developers or project parties whose dApp uses the data services provided by the HyperGraph network. The dynamic of data users is similar to how cloud server users pay a server fee.

It is essential to remind ourselves that one person can play multiple roles in the HyperGraph network simultaneously. For example, you can be a miner and delegate the HGTs to an index node to earn the HGT reward. At the same time, you will use the HGT reward to purchase the HyperGraph query service and pay the service fee.

Position Locking Mechanism of HGT

The vision of HyperGraph Network is to index all the data across the entire world. So, it sets no upper limit on the number of index nodes, and each index node participating in the network needs to mortgage at least 100,000 HGTs in order to receive query fees. Moreover, the profit obtained from the nodes is related to the amount of HGTs mortgaged to a certain extent. If the profit is high and the amount of HGTs mortgaged is low, the node will be unable to generate the full reward until enough HGTs are mortgaged. Generally, the locked nodes need to provide data services for a long time and rarely unlock.

When the agent asks for unlocking, the HGT applied for unlocking will be refunded after 28 days.

Destruction Mechanism of HGT

One percent of the data query fee will be destroyed, and the destruction proportion can be adjusted by community vote. The more frequent the network uses, the more HGTs are destroyed. The mortgaged tokens will be subject to 0.5% tax which will be destroyed.

In general, the economic model design of HGT is quite reasonable, as it has a complete lock position mechanism and destruction mechanism. The coins dug out now may prove to be a gold mine as long as the project technology is reliable together with enough project parties to build nodes and use the services of nodes to enable the entire token ecology to operate.

Prospective Summary

Project Orientation: Google in the blockchain field

Targeted Project: GRT on Ethereum, with a market value of US$2.5 billion, a total of 2.4 billion GRTs mortgaged, and participation in 180 index nodes.

Token Circulation: no more than 500 million, with 28,800,000 for the first phase of mining circulation, accounting for 5.8% of the total circulation. The early investors and teams are unlocked with mining. Unlocking is not available if there is no mining.

Token Destruction: 1% query fee in product operation and 0.5% of the total amount mortgaged will be destroyed.

Token Mortgage Mechanism: mortgage at least 100,000 HGTs for each single data index node, with no upper limit for the number of nodes.

Project Progress: The products at project end have already initially launched and actual users have started to use them. The developer community has been initiated and will go live in May. At that time, a mortgage will begin.

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